Exhibit
10.5


 


OPTION TO  PURCHASE


 


Agreement made this 14th day of March, 2003, by and
between Clarence L. White and Berniece F. White, husband and wife, hereinafter
“Owner” and East Kansas Agri-Energy, L.L.C., a Kansas Limited Liability
Company, hereinafter “Purchaser”.


 


In consideration of the
sung of $5,000.00 cash in hand paid from Purchaser to Owner, the receipt
of which is hereby acknowledged, the parties hereto agree as follows:


 


(1) Owner grants, bargains and conveys to Purchaser
the option to purchase a tract consisting of approximately ten (10) acres
located in the following described tract of real property situated in Anderson
County, Kansas, to-wit:


 


The Southwest Quarter (SW/4) of the Southeast Quarter
(SE/4) of Section Thirty (30), Township Twenty (20) South, Range Twenty (20)
East of the Sixth Principal Meridian.


 


(2) The purchase price shall be $9,000.00 per acre,
based upon the size of the tract as to be determined by survey, with Purchaser
to receive credit against the purchase price for the amount paid for this
option as well as the option dated March 14, 2002..


 


(3) The term of this option shall be for twelve (12)
months from the date hereof.


 


(4) Purchaser shall exercise this option to purchase
by delivering a written notice of intent to exercise the option to the Owner at
his residence in Gannett, Kansas, no later than five o’clock p.m. (5:00 p.m.)
on March 13, 2003. Owner and Purchaser shall thereafter enter into a binding
contract for the sale and purchase of the tract of real estate describes
herein, which contract shall provide for a closing date and other essential
terms to the contract.


 


(5)  The
contract for the sale of this real estate shall contain the following
provisions:


 


(A) The cost of surveying
the tract to be purchased together with all title
insurance shall be paid by Purchaser.


 


(B) The purpose of this
option to purchase is to provide Purchaser with a tract of sufficient size to
allow the placement of a railroad spur over and across the tract to provide
access from Purchaser’s anticipated Ethanol Plant to the existing railroad
track located in the city of Garnett, Kansas. It is anticipated that this will
require approximately ten (10) acres of ground from Owner, however, after
Purchaser determines the amount of ground required, it will through its survey
cause the boundaries of the tract to be squared off, such that the Western
boundary of Owner’s remaining property will be a straight line running due
North and South,


 


(C) Purchaser will be responsible for replacing the Owner’s West
boundary fence at Purchaser’s expense with a fence approximately equal to the new fence constructed by City o£ Gannett
Sewer Project, which is also located on property formerly owned by Owner.


 


(D) Purchaser will also
pay to replace the current loafing barn and concrete pad, together with a
potable water hydrant and a dusk to dawn pole light. The barn will be moved to
the East of its present site and will be provided with water and electric
utilities.


 


(6) This Option to Purchase cannot be assigned by
Purchaser without the written consent of Owner.


 


(7) Time is of the essence in the performance of this
agreement.


 

















 


Option to Purchase


 


(8) This agreement shall be binding upon the heirs,
successors and assigns of Owner and Purchaser.


 


IN WITNESS WHEREOF, the parties hereto have set their hands on the day and date above
written.


 


	
  OWNER:

  	
  PURCHASER: EAST

  KANSAS AGRI-ENERGY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Clarence L. White

  	
   

  	
  By:

  	
  /s/ William R. Pracht

  	
   

  
	
  Clarence L. White

  	
  William R. Pracht, Chairperson

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Berniece F. White

  	
   

  	
   

  	
   

  
	
  Berniece F. White

  	
   

  	
   

  



 


 


STATE OF
KANSAS             )


SS:


COUNTY OF ANDERSON  )


 


The foregoing  instrument
was acknowledged before me this 13th day of March, 2003, by Clarence
L. White and Berniece F. White, husband and wife.


 


	
   

  	
  /s/ Daniel D. Schulte

  	
   

  
	
  Term Expires

  	
  Notary Public

  	
   

  
	
  03-01-07

  	
   

  



 


	
  STATE OF KANSAS

  
	
  SS:

  	
  DANIEL
  D. SCHULTE

  Notary Public - State (1f Kan¢as

  my Appt.   03-01-07

  
	
  COUNTY OF ANDERSON   )

  



 


The foregoing instrument
was acknowledged before me this 13th day of March, 2003, by William
R. Pracht, Chairperson of East Kansas Agri-Energy, L.L.C., a Kansas Limited
Liability Company, on behalf of the limited liability company.


 


 


	
   

  	
  /s/ Daniel D. Schulte

  	
   

  
	
  Term Expires

  	
  Notary Public

  	
   

  
	
  03-01-07

  	
   

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  



 


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